Ah, new year. It is just around the corner! You can practically see its shadow and hear its footsteps as it inches closer to us. Of course, we are very grateful for the experiences and learnings from 2024. Still, we just cannot wait to welcome 2025 with a big, warm hug! New year, afterall, is always an opportunity to set killer financial goals.
Maybe you are dreaming of being debt-free, or perhaps you want to spend your summer vacation outside the country. Before you rush into it, there are things you need to consider first so you won’t end up with a messy notebook of aspirations.
Assess your current financial situation
Your first order of business is to take a good, hard look at where you stand right now. How would you describe your income and expenses? Do you have savings, or are you harboring more debts than you could handle? Are you still paying that loan you took from a licensed moneylender for that amazing staycation at Marina Bay Sands? Whatever your situation, getting a clear picture of your finances is crucial.
Consider your life goals and values
Financial goals must reflect the things you value in life and your overall dreams. For some, it could be owning a cozy flat in Punggol. For others, it could be launching their own hawker stall serving the best chicken rice in Singapore. Or, it could be as simple as saving for your kid’s education or planning for early retirement. Whatever it is, make sure your financial goals are in sync with what truly matters to you.
Be realistic and specific
At some point in our lives, we have dreamt of receiving a call saying, “Congratulations! You’re now a millionaire!” But that call rarely comes. So, what we can do is be realistic about what we can actually achieve in a year.
Instead of saying, “I want to be rich,” try something like, “I want to save $10,000 for a down payment on a car.” Specific goals are easier to plan for and track. It’s like aiming to lose weight – saying you want to fit into those jeans you wore during your poly days is more motivating than just saying you want to “lose weight.”
Don’t forget about short-term goals
While it’s great to have big, long-term goals like saving for retirement or buying a property, don’t neglect your short-term financial needs. Maybe you want to treat yourself to a new laptop or take a weekend getaway to Bintan. These smaller goals can keep you motivated and give you a sense of accomplishment along the way. It’s like treating yourself to some delicious kaya toast after a morning jog – small rewards can keep you going!
Plan for the unexpected
If there’s one thing we’ve learned in recent years, it’s that life can throw some major curveballs our way. When setting your financial goals, make sure to factor in some wiggle room for unexpected expenses or changes in circumstances. This might mean building up your emergency fund or considering insurance options. Think of it as bringing an umbrella even when the weather forecast says it’ll be sunny – better safe than sorry!
Conclusion
So there you have it, folks! These are some key things to mull over before you start jotting down those financial goals for next year. Remember, the journey to financial wellness is a marathon, not a sprint. Take your time, be thoughtful, and most importantly, be kind to yourself along the way. Here’s to a prosperous and financially savvy new year ahead!
